Exporters hope to resume Saudi sheep trade

Livestock exporters say they expect trade with Saudi Arabia to resume within three months, possibly at levels of 2 million sheep a year.

The Saudi market was Australia's biggest, worth up to $300 million, when it was stopped in late 2003.

Saudi authorities alleged Australian sheep on the ship, Cormo Express, had scabby mouth disease, and banned the trade.

Ian McIvor, from the Live Exporters Council, says a lifting of the ban is vitally important to the industry, especially in eastern Australia.

"They're taking nearly 30 per cent of the market," he said.

"If we can get them back in I would suggest the whole market should lift, particularly in Western Australia, and of course if there's insufficient sheep there to meet the demand then the inquiry comes east, which is even more important."

The federal Agriculture Minister, Warren Truss, says the Saudi Government has agreed to new measures, including the construction of a quarantine holding facility.

"The Saudi Agriculture Minister has indicated that Saudi are ready again to receive Australian sheep," he said.

"They have a quarantine facility they believe will be suitable to meet our requirements in relation to off-loading of animals in the event of there being problems.

"Negotiations are proceeding at the present time on the detail of what might be included in any memorandum between Saudi and Australia."